Source: Chain Tea House
Binance Labs announced its investment in the full-chain liquidity distribution network StakeStone. StakeStone uses STONE (interest-bearing ETH token) to bring native staking income and liquidity to the Layer2 network. This article attempts to comprehensively understand the fundamentals of the StakeStone project through 12 questions.
1. Which track field does the project belong to? What are the projects similar to it?
The StakeStone project belongs to the field of Liquid Staking, especially in the context of decentralized finance (DeFi) and Ethereum Layer 2 solutions. Projects in this space focus on providing liquidity staking services, allowing users to stake their crypto assets (such as Ethereum) into different protocols to earn staking returns while maintaining the liquidity of the asset. Projects similar to StakeStone include Lido, Rocket Pool, etc. These projects all provide liquidity staking services, but each has its own characteristics and mechanisms. StakeStone is unique in its cross-chain liquidity market and OPAP mechanism, which allows it to provide users with a wider range of use cases and revenue opportunities.
2. What problems does the project mainly solve?
The main problem solved by the StakeStone project is how to provide users with optimized liquidity staking income and cross-chain liquidity solutions in a decentralized environment. Specifically, it provides innovative solutions to the following key issues:
The balance between liquidity and returns: Traditional staking usually This will result in a loss of asset liquidity because the pledged assets are locked and cannot be used elsewhere. By providing the concept of Yield-bearing ETH (interest-bearing Ethereum), StakeStone allows users to retain the liquidity of their assets while receiving staking benefits.
Cross-chain compatibility: With the development of multi-chain ecosystems, users need to efficiently move and manage assets between different blockchains. StakeStone supports the seamless transfer of assets and prices between multiple blockchains by establishing a multi-chain liquidity market based on STONE.
Automatic revenue optimization: Users may lack the expertise or time to continuously optimize their staking strategies. StakeStone's OPAP (Optimizing Portfolio and Allocation Proposal) mechanism automatically adjusts the underlying asset allocation to ensure that users can obtain optimal staking returns.
Transparency and security: In the field of DeFi, the transparency and security of the underlying assets are crucial. StakeStone provides complete asset and income transparency through a decentralized architecture and non-custodial services to ensure the safety of user funds.
Simplify integration and adoption: For Layer 2 developers, integrating liquidity staking solutions may introduce additional complexity. As a non-rebase OFT (Omnichain Fungible Token) based on LayerZero, STONE can be easily integrated by Layer 2 developers without additional complexity.
3. What are the core functions of the project and its main operating principles?
The core function of the StakeStone project is to provide a cross-chain liquidity staking protocol, which allows users to participate in Ethereum and other projects through its native Liquid Staking Token (LST) - STONE. During the pledge of the blockchain network, the liquidity and profitability of the assets are maintained at the same time. The following are the main functions and operating principles of StakeStone:
Core functions:
Liquidity staking: users can stake ETH Or other supported assets are pledged into StakeStone to obtain staking income. These assets are converted into Yield-bearing ETH or other forms of LST, and these tokens represent the user's pledged assets and corresponding income rights.
Multi-chain compatibility: STONE is built on LayerZero, which means it can be transferred seamlessly between multiple blockchains, providing users with cross-chain liquidity s solution.
Automatic income optimization: Through the OPAP (Optimizing Portfolio and Allocation Proposal) mechanism, StakeStone can automatically adjust and optimize the allocation of underlying assets to ensure that users obtain the best staking income.
Non-custodial and transparent: StakeStone’s architecture is non-custodial, and all transactions and asset status are publicly verifiable, ensuring users have full control and transparency over their assets. .
Easy to integrate: For Layer 2 developers, STONE can be easily integrated into their platform without complex setup or additional technical requirements.
Principle of operation:
Pledge and conversion: Users transfer ETH or other assets Sent to the StakeStone protocol, these assets are then converted into corresponding LST (such as STONE tokens). These tokens can be used in other DeFi platforms or applications, while users receive staking benefits.
OPAP mechanism: OPAP is an innovative feature of StakeStone that allows the protocol to automatically adjust its asset allocation based on market conditions and strategy performance. This means that STONE holders can automatically obtain the optimal staking returns without manual management.
Cross-chain liquidity: STONE, as an OFT based on LayerZero, supports cross-chain liquidity, allowing assets to move freely between different blockchain networks, providing users with Wider market opportunities.
Income distribution: Staking income (including transaction fees, governance rewards, etc.) will be regularly distributed to STONE holders. These incomes can be direct token distribution, or they can be It is reflected in the form of increased STONE value.
Through these functions and principles, StakeStone aims to provide users with an efficient, flexible and revenue-maximizing staking platform, while promoting the development of DeFi and cross-chain liquidity.
4. What technological innovations does the project have? What are the core strengths?
Technical innovation:
Optimizing Portfolio and Allocation Proposal (OPAP) mechanism: This is StakeStone's An innovative feature that allows automatic optimization of the allocation of underlying assets to ensure users can obtain optimal staking returns. The OPAP mechanism automatically adjusts asset allocation through algorithms and smart contracts in response to market changes and the performance of different pledge pools.
Non-custodial and transparency: StakeStone provides a completely non-custodial service, and all pledged assets and earnings are managed by smart contracts, ensuring complete transparency of underlying assets and earnings. This design improves security and reduces trust costs.
Cross-chain liquidity: LayerZero-based STONE token supports seamless asset and price transfer across multiple blockchains. This cross-chain compatibility provides developers and users with great flexibility, allowing them to easily move and utilize assets across different blockchain ecosystems.
Multi-chain liquidity market: StakeStone has established a multi-chain liquidity market based on STONE, providing users with more use cases and revenue opportunities. This includes not only staking returns, but also the possibility to participate in other DeFi activities.
Core advantages:
Income maximization: Through the OPAP mechanism, StakeStone can Ensure that users get maximum staking benefits without requiring users to perform complex asset management themselves.
User experience: StakeStone's design focuses on user experience. Through simplified operating procedures and intuitive interfaces, even DeFi novices can easily participate.
Security and trust: Due to its non-custodial nature and transparency, users can fully trust the system and track their assets and earnings in real time.
Cross-chain capabilities: The cross-chain capabilities of STONE tokens provide users with a wider range of investment opportunities, allowing them to take advantage of different blockchain networks.
Easy to integrate: For Layer 2 developers, STONE’s easy integration lowers the technical threshold, allowing more projects to quickly adopt StakeStone’s liquidity staking service.
5. What are the goals of the overall business model and which households are they serving?
Key components of the business model:
Liquidity staking service: StakeStone allows users to stake crypto assets (such as ETH) are pledged to different blockchain networks, and corresponding liquidity tokens (such as STONE) are obtained at the same time. These tokens can be traded in the market or used for other DeFi services.
Income optimization: Through the OPAP mechanism, StakeStone automatically optimizes the user's pledged asset allocation to maximize returns. A fee may be charged for this service as one of the project's sources of income.
Cross-chain liquidity: The cross-chain characteristics of STONE tokens enable StakeStone to provide users with liquidity services in multiple blockchain networks, which may involve cross-chain Chain transaction fees or other related service fees.
Ecosystem construction: StakeStone may cooperate with other DeFi projects to jointly build a more prosperous DeFi ecosystem by providing liquidity, pledge services or other financial products.
Target User Group:
Cryptocurrency Investors: Looking to Stake Crypto Individual investors who earn passive income from their assets may want to streamline the staking process through StakeStone's automated services.
DeFi users: Users who are interested in decentralized financial products and may be looking for other income opportunities besides traditional lending and liquidity mining.
Layer 2 Developers: Developers who need to integrate liquidity staking services for their Layer 2 solutions can leverage StakeStone’s ease of integration to attract and retain users.
Institutional investors: Large investment funds or institutions that may be interested in providing liquidity staking services that provide stable and optimized returns.
Cross-chain asset users: Users who want to seamlessly transfer assets between different blockchain networks can use STONE's cross-chain features to achieve this goal.
6. What are the main sources of income for the project?
Pledge service fee: As a liquidity staking agreement, StakeStone may charge a certain percentage of services when users pledge their assets. fee. This is a typical DeFi platform revenue source, similar to transaction fees or management fees.
Re-pledge income: StakeStone supports a re-pledge mechanism, allowing users to pledge their obtained liquid pledge tokens (such as STONE) again to obtain additional income. During this process, the project may charge a certain percentage of re-pledge service fees.
Cross-chain liquidity service fee: Since STONE is an OFT based on LayerZero and supports cross-chain liquidity, StakeStone may charge fees for cross-chain asset transfer services.
Partners and integration services: StakeStone may cooperate with other DeFi projects or blockchain applications to provide liquidity support or integration services, thereby obtaining cooperation fees or sharing.
Governance and voting rights: In the decentralized autonomous organization (DAO) model, StakeStone’s token holders may participate in governance decisions, and the project may pass governance proposals Get financial support.
Token economic model: StakeStone’s token economic model may include token issuance, repurchase and destruction mechanisms. The implementation of these mechanisms may indirectly affect the project’s income.
Liquidity mining rewards: If StakeStone implements a liquidity mining plan, it may receive a portion of transaction fees or other forms of rewards as revenue from users who provide liquidity .
Technical service fee: StakeStone may charge a certain technical service fee for API, SDK or other technical solutions provided to other projects or developers
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7. How is the distribution of project token used and how to unlock it?
It has not been announced yet
8. What are the application scenarios of token? Is there a pledge and destruction mechanism?
It has not been announced yet
9. Who are the founding teams of the project and what are their backgrounds and resumes?
It has not been announced yet
10. What are the core investment institutions for the project valuation and financing amount?
It has not been announced yet
11. The current number of users, transaction volume, revenue, tvl and other data?
tvl has reached 1.2 billion US dollars
12. What exchanges have the tokens been listed on?
Not announced yet
JinseFinance
Brian
Max Ng
Cointelegraph